I have always wanted to know whether it is feasible to earn Rs. 200 crores or more within 2 weeks or 3 weeks of launching a movie. Because there are a lot of variables here and there is a lot of potential to earn this considering the huge population of India and the rising ticket prices.
But can they really earn so much so fast? That is what I wanted to know. So I have taken the following assumptions into this study.
- Single Screen theaters only to be considered
- For one week, all 4 shows are just Bahubali and no other movie.
- All the 4 shows each day for one week are houseful.
- Tickets for single screen are inexpensive compared to multiplex.
- The earnings are only categorized as ‘revenue’ and not ‘profit’.
- Just 47 screens from Bangalore are considered for sample testing.
In the first assumption I had to take only single screen theaters because multiplex theater capacity is smaller but charge more. Multiplex and single screen theaters have a different demographic so they cannot be categorized into the same study.
Also, multiplexes earn more through sale of food and beverage as compared to single screen theaters whose main source of revenue is only the ticket sales. Single screen theaters charge a maximum of Rs. 150 for a ticket on weekends. Multiplexes, especially PVR charges Rs. 900 for gold class on a weekend!
|Most Expensive Days||Fri||250||Fri||150|
Lets first look at the theater capacity; since there are 47 theaters with varying capacity, it was difficult to go through each and every theater’s individual capacity. So 5 theaters were randomly chosen and here is the approximate capacity of each.
So let’s look at the earnings here in just these 5 theaters.
|Theater||Capacity||Shows||Ticket||Revenue Each Day|
|Average Revenue Per Day||217600|
|Avg Revenue Per Day for 47 Theaters||10227200|
Now assuming it runs for 7 days straight, the total revenue for 7 days is Rs. 70227200!
This is just in Bangalore! And you can imagine if just in Bangalore, you can make nearly a crore rupees a day, the rest of the cities in India also provide equal opportunity to earn the same. Just Andhra Pradesh / Telangana have a massive audience which can add to these several crore rupees in revenue.
There are thousands of theaters across which Bahubali was released. So indeed there is potential to earn not just 200-300 crores but a lot more than what they have. Although it already has earned so much more than it, it confirms the hypothesis that there is a possibility of a movie making so much money in a short period of time.
To clarify, whatever we see is the revenue. The movie industry incurs very expensive overheads because a lot of the work requires manual labor, everything from lighting, editing, art direction and even the visual effects requires people to use their skill sets to make it happen. The labor also used here is skilled labor and all this comes for a price thereby leading to costly overheads. So even if a movie earns 300 crores or more, the costs are equally high. The profit margins drop significantly when this happens.
Maybe in a few days I will accurately estimate the profit margins of the movie making business.
– Professor Vipin
If you finished reading this article, you would know why I am better than your college professors.